Income Tax for Business

Income Tax Return for Business

An income tax return is a form where taxpayers have to declare their taxable incomes from all sources, eligible deductions, and tax payments if any. This is called ITR Filing Procedure. Income Tax Return is to be filed for a particular Financial Year (i.e. April to March) irrespective of Accounting Year adopted by you. Income tax return forms range from ITR 1 to ITR 7, used for different types of income and different types of entities. Depending on the type of forms, there are various disclosure requirements. There are different due dates for different ITR forms. In this article we have mentioned all the important ITR filing due dates for Company, LLP and Firms and HUF.

Types of Income Tax

Income Tax is further subdivided into many categories but there are three main categories of income tax based on the category of payee and time of payment.

These are:

1. Tax Deducted at Source (TDS)

TDS, as it is commonly known as Tax Deducted at Source . The tax is paid by a third person/corporation who/which happens to be the source of income for the taxpayer if the payment exceeds certain threshold limits at the rate prescribed by the government of India.

The other person/corporation must, however, abide by the prevalent IT laws. TDS is an ideal mechanism for the government to ensure timely Income Tax payment as well as curb tax evasion.

2. Advance Tax

Also referred to as ‘pay as you earn Scheme in ’ in contrast to the scheduled annual tax payment tax procedures, Advance Tax is paid on a Presumptive basis.

Taxpayers, Businesses, Salaried Individuals and freelancers with tax liabilities during the current financial year is greater than Rs 10,000 are needed to pay advance tax in four instalments throughout the financial year in which they earn income.

The taxpayers need to pay Advance Tax as per the following table:

Payment of Advance Tax: Self-employed and businessmen

Due Date	Pay Advance Tax
On or Before 15^th September	30%
On or Before 15^Th December	60%
On or Before 15^th March	100%

Payment of Advance Tax: Companies

Due Date	Pay Advance Tax
On or Before 15^Th June	15%
On or Before 15^th September	45%
On or Before 15^Th December	75%
On or Before 15^th March	100%

Note : The Assessee who are covered under 44AD and 44ADA (i.e. Presumptive Income) are also required to pay Advance Tax on or before 15th March of the previous year. However, any tax paid till 31st March will be treated as Advance Tax.

3. Self-Assessment Tax

This is the balance or remaining tax paid by an individual or taxpayer after taking into account the TDS and Advance Tax.

Income Tax Returns (ITR) Forms

ITR forms are required to be filed electronically as per the nature of the entity within its prescribed due dates. In other words is the types of direct tax which the entities are required to be paid on their direct Income from Business or Profession including interest, dividends, Capital Gains and other sources. The Details of ITR used for various types of business entity are given below.

Form ITR-3

ITR 3 Form is for use by a Hindu Undivided Family or an individual

Form ITR-4

Also known as Sugam, ITR 4 Form is for use by HUF/ individual / Partnership Firm whose total income consist of :-

Business income evaluated in reference with special provisions mentioned in section 44AD and section 44AE of the Act for computation of business income; or
Professional income evaluated in reference to special provisions of sections 44ADA; or
ITR-4 can not be filed if taxpayer is a joint owner in House Property.
Salary/ Pension; or
Income from One House Property (excluding cases where a loss is brought forward from previous years); or
Income from other sources (excluding windfalls like lotteries or horse racing)

Form ITR-5

ITR-5 is for firms, LLPs, AOPs (Association of persons) and BOIs (Body of Individuals). Further, it is also meant for an artificial juridical person referred to in section 2(31)(vii), cooperative society and local authority.

Form ITR-6

ITR 6 can be used by companies not claiming exemption on income from property held for charitable or religious purposes under section 11.

Form ITR-7

ITR 7 Form can be used by persons as well as companies which are required to furnish return under:

Due Dates for filing ITR

Types of Entity	Due Dates
Non- Audit Cases (Individuals, professionals, small businesses etc)	31^st July
Businesses (Requiring Audit including Private Limited Company, OPC, LLPs and firms)	31^St Oct